Our Professional Opinion on the Global Atlantic Income 150+ SE Annuity
Income 150+ SE is a good guaranteed-income annuity and belongs in a competitive income comparison. It is designed for people who expect to begin lifetime income within roughly the next decade, and it builds the Withdrawal Base through a series of contractual Deferral Bonuses rather than relying entirely on future index performance.
Forethought Life Insurance Company is a good annuity company. It is part of Global Atlantic and is rated A by AM Best, which meets our minimum financial-strength standard.
The name “Income 150+” can be misleading unless the reader understands what reaches 150%. The product can grow the Withdrawal Base to 150% of premium through five scheduled bonuses when income remains deferred, and no withdrawals interfere with the credits. That value is not cash, cannot be surrendered, and is not the death benefit. It is used only to calculate guaranteed lifetime withdrawals.
We like the contractual path better than a purely performance-based income rider. The initial bonus and scheduled annual bonuses provide a known minimum benefit-base path. The additional “Plus” credit in year ten is less dependable because it is based on interest earned by the contract during the first nine years.
The actual guaranteed payout is still more important than the bonus. Compare the same premium, age, state, income start date, single- or joint-life structure, and survivor protection with other guaranteed lifetime withdrawal benefits. A large Withdrawal Base is only useful when it produces a competitive retirement paycheck.
We generally prefer the Level Payment Option. It provides a more stable lifetime payment and makes long-term planning easier. The Lifestyle Payment Option begins with more income, then steps down to the level amount, and eventually drops to a lower legacy-phase percentage. It can fit a deliberate “spend more early” strategy, but buyers need to see every future phase in dollars before electing it.
The 7-year contract is our preferred starting point. The 10-year version should only be used when the guaranteed payout, index terms, or other contractual benefits are meaningfully better. A ten-year surrender commitment is not justified merely because the year-ten Plus credit sounds attractive.
The Income Enhancement Benefit can double the lifetime payment for up to five years after a qualifying inability to perform two activities of daily living. We like the added protection, but it ends when the contract no longer satisfies the account-value requirements and is not a replacement for long-term care insurance.
Bottom line: Income 150+ SE is a competitive income FIA for a retiree who expects to activate income within about ten years. Start with the 7-year version and the Level Payment Option, then compare the guaranteed payout with the best available A- or better-rated competitors. Do not buy it because “150%” sounds like a cash bonus.
What We Like
- Contractual Deferral Bonuses: The Withdrawal Base receives scheduled increases without requiring index gains.
- Day-one income-base increase: The rider begins building future guaranteed income immediately.
- Level and Lifestyle choices: The retiree can select stable income or a deliberately front-loaded payment pattern.
- Single- and joint-life income: The rider can protect one person or two covered spouses.
- Lifetime payments after account depletion: Permitted withdrawals continue for life when rider rules are followed.
- 7- and 10-year contract choices: The buyer can compare a shorter or longer surrender commitment.
- Income Enhancement Benefit: A qualifying ADL impairment can temporarily double the lifetime payment.
- Guaranteed minimum surrender value: Before activation, the contract provides an important floor after the withdrawal-charge period.
- Annual penalty-free access: Up to 10% of beginning-of-year contract value is generally available without a withdrawal charge.
- Nursing-home and terminal-illness waivers: Qualifying events can provide additional access without normal charges.
What We Don’t Like
- The Withdrawal Base is not cash: The 150% value cannot be surrendered or left directly to beneficiaries.
- 1.20% annual rider charge: The fee is assessed against the Withdrawal Base and deducted from the contract value.
- The Plus credit is performance-dependent: The year-ten increase depends on interest actually earned during years one through nine.
- Lifestyle income eventually drops: The legacy phase can provide materially less income than the early active phase.
- Excess withdrawals can damage the guarantee: Taking more than the permitted lifetime amount proportionally reduces future income.
- Renewal-rate risk: Future caps, participation rates, spreads, and fixed rates can change.
- Ten-year version is a long commitment: The longer contract should provide a clear advantage before it is selected.
- Care enhancement is temporary: It is not an unlimited long-term care benefit and requires sufficient contract value.
- Market Value Adjustment: Excess withdrawals and applicable annuitizations can be affected by market interest rates.
- Not an accumulation product: The rider fee and income economics make it a poor choice when lifetime income is not the primary objective.
What Is Income 150+ SE?
Income 150+ SE is a single-premium fixed indexed annuity issued by Forethought Life Insurance Company. It includes a required guaranteed lifetime withdrawal benefit designed to build lifetime income through scheduled Withdrawal Base bonuses.
The contract has two important values. The contract value is the cash account used for withdrawals, surrender, and the death benefit. The Withdrawal Base is a separate accounting value used to calculate the Lifetime Annual Payment. These annuity values can be different.
Income 150+ SE Product Details
| Issuing company | Forethought Life Insurance Company |
|---|---|
| Product type | Single-premium fixed indexed annuity with required GLWB |
| Issue ages | 55 through 85 |
| Minimum premium | $10,000 |
| Maximum premium | Generally $1 million through age 80 and $500,000 for ages 81 through 85 without approval |
| Withdrawal-charge periods | 7 or 10 years; state variations apply |
| Rider fee | 1.20% of the Withdrawal Base annually, subject to the issued contract |
| Income options | Level Payment or Lifestyle Payment |
| Normal free withdrawal | Up to 10% of beginning-of-year contract value |
| MVA | Applies to applicable excess withdrawals and certain annuitizations during the charge period |
| Income enhancement | Two times the Lifetime Annual Payment for up to five years after qualifying ADL impairment |
| Death benefit | Remaining contract value or applicable guaranteed minimum value before activation |
How the 150% Withdrawal Base Is Built
The rider applies a series of Deferral Bonuses when income remains deferred, and no disqualifying withdrawal occurs.
- At issue: The Withdrawal Base receives an initial bonus based on premium.
- Beginning of years two through five: Additional bonuses are credited under the rider schedule.
- After all five credits: The Withdrawal Base can equal 150% of the original premium before considering the year-ten Plus feature.
This is an income bonus rather than a cash premium bonus. It increases the value used in the payout calculation but does not increase the amount available for surrender.
A withdrawal before activation proportionally reduces the Withdrawal Base and the base used for future bonuses. A bonus may also be skipped in a year when a withdrawal occurs.
The Year-Ten Plus Credit
When income has not started during the first nine years, the rider can add a credit at the beginning of year ten equal to a multiple of the interest earned by the contract during years one through nine, adjusted for withdrawals.
This feature provides upside, but it is not guaranteed to produce a large increase. It depends on actual index and fixed-account interest. Weak crediting years, lower renewal terms, or withdrawals reduce the benefit.
Do not accept a ten-year surrender schedule solely to pursue this non-guaranteed credit. Compare the guaranteed payout under the 7- and 10-year contracts before placing any value on the Plus feature.
How Lifetime Income Is Calculated
At activation, Global Atlantic multiplies the Withdrawal Base by the applicable withdrawal percentage. The percentage is based on age and whether income is single life or joint life.
Joint-life income uses the younger covered spouse and generally reduces the withdrawal percentage. That lower starting payment buys a guarantee designed to continue while either spouse is alive. Review exactly what continues for the surviving spouse before purchase.
The percentage locks when income begins. The Lifetime Annual Payment can continue after permitted withdrawals deplete the contract value.
Level Payment Option
The Level Payment Option provides a stable annual amount based on the issued withdrawal percentage and Withdrawal Base. It is the easier option for budgeting and long-term planning.
We prefer this structure for most retirees because the payment does not deliberately step down at older ages. The amount may still be affected by excess withdrawals or other rider violations.
Lifestyle Payment Option
The Lifestyle Payment Option front-loads the income through three phases:
- Active phase: The payment begins above the level amount.
- Steady phase: The payment generally returns to the ordinary level percentage.
- Legacy phase: The percentage drops to a lower amount at advanced ages.
The election is generally available only before age 70 and cannot be changed after activation. It may fit a retiree intentionally pursuing a “go-go, slow-go, no-go” spending plan, but it creates a real risk of having less income when healthcare and support costs are highest.
Compare the cumulative dollars and later-life floor rather than focusing only on the first-year payment. A payout analysis should show every phase for both spouses.
The 1.20% Rider Fee
The annual annuity rider fee is calculated from the Withdrawal Base and deducted from the contract value. Because the Withdrawal Base can grow faster than the cash account, the dollar fee can become a larger percentage of the remaining contract value.
The fee can be reasonable when the guaranteed payout is near the top of the market. It is not justified merely by the size of the benefit base or the product name.
Index Growth and Renewal Risk
The contract value can earn interest through a fixed account and index-linked strategies. The owner is not directly invested in an index, and positive performance is limited by contract terms such as a cap, participation rate, or spread.
Most crediting terms can change at renewal. That matters because weaker account-value growth lowers the year-ten Plus credit and leaves less money for beneficiaries. Review how FIA renewal rates work before relying on an illustration.
The Income Enhancement Benefit
The rider can double the Lifetime Annual Payment for up to five years after the covered person has been unable to perform at least two activities of daily living for the required period and satisfies the certification rules.
The contract value must remain above the rider’s required minimum for the enhancement to begin and continue. The enhanced amount is temporary and does not reimburse actual care expenses.
Someone seeking a dedicated care benefit should compare hybrid long-term care insurance rather than relying on an annuity income doubler.
Liquidity, Surrender Charges, and MVA
The contract generally allows up to 10% of beginning-of-year contract value to be withdrawn without the normal charge. Amounts above that allowance can trigger a surrender charge and MVA.
After income begins, an excess withdrawal can proportionally reduce the Withdrawal Base and future payment. Someone expecting irregular large withdrawals should retain more liquid savings or compare liquidity-focused annuities.
Death Benefit and Money Left to Family
The Withdrawal Base and Deferral Bonuses are not paid to beneficiaries. Before activation and after the withdrawal-charge period, the guaranteed minimum surrender value may support the death benefit when it exceeds the contract value. Otherwise, beneficiaries generally receive the remaining contract value.
Lifetime withdrawals and rider fees reduce the contract value over time. If the account reaches zero, guaranteed income can continue, but there may be no remaining value for children or other beneficiaries.
Buyers focused primarily on legacy should compare enhanced death-benefit annuities or life insurance.
Tax Treatment
Interest in a nonqualified annuity grows tax-deferred and is generally taxed as ordinary income when withdrawn. Once the contract value is exhausted and lifetime payments continue, those payments are generally fully taxable.
An IRA already provides tax deferral. The product should be selected for its guaranteed income, principal protection, spouse continuation, and other insurance features rather than additional tax deferral. Review the contract within the household’s IRA and rollover strategy.
Who Should Consider Income 150+ SE?
- A retiree planning to begin guaranteed income within approximately ten years.
- A buyer whose contract-specific payout is competitive with top GLWB alternatives.
- A married couple seeking joint lifetime income.
- Someone who prefers scheduled benefit-base bonuses over a purely performance-based rider.
- A retiree who values a temporary ADL-based income enhancement.
- Someone with enough liquid assets outside the annuity to avoid excess withdrawals.
Who Should Avoid It?
- Someone who believes the 150% Withdrawal Base is cash.
- A buyer focused primarily on accumulation rather than lifetime income.
- Someone who may need substantial irregular access to the premium.
- A retiree selecting Lifestyle income without understanding the later payment reductions.
- Someone relying on the Income Enhancement Benefit as the only long-term care plan.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated benefits that can last longer and cover broader care settings.
- Life insurance: Can replace legacy value expected to be depleted by lifetime withdrawals.
- Medicare Supplement coverage: Helps control healthcare costs separately from the income plan.
Alternatives to Compare
A competing guaranteed-roll-up GLWB: Compare the highest guaranteed payout from A- or better-rated insurers.
ForeIncome II: Global Atlantic’s alternative design offers a choice between a guaranteed Income Builder and a performance-based Income Multiplier.
A managed portfolio plus separate income annuity: Separating growth and guaranteed income can make each job easier to evaluate.
A SPIA for a narrow use case: Immediate annuitization is primarily useful for early-retirement tax planning, Medicaid planning, or a period-certain Social Security bridge. Compare SPIAs and GLWBs before giving up control of principal.
Our Final Recommendation
We recommend quoting Income 150+ SE, beginning with the 7-year Level Payment version. The scheduled bonuses provide a dependable benefit-base path, and the payout can be competitive. Use the 10-year version or Lifestyle option only when a dollar-by-dollar comparison shows a clear advantage.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Income 150+ SE with competing GLWB annuities. We will compare guaranteed annual and monthly income, Level and Lifestyle payments, rider fees, single- and joint-life payouts, spouse continuation, liquidity, care enhancements, death benefits, and insurer strength before you buy coverage.
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Frequently Asked Questions
Does Income 150+ SE give me a 150% cash bonus?
No. The 150% value is a Withdrawal Base used to calculate lifetime income. It is not cash, surrender value, or the death benefit.
Which version is better, 7 or 10 years?
Start with the 7-year version. Use the 10-year version only when it produces meaningfully more guaranteed income or another clear contractual advantage.
What is the difference between Level and Lifestyle income?
Level income is designed to remain stable. Lifestyle income begins higher, then steps down in later phases, including a lower legacy-phase payment.
Can income continue after the contract value reaches zero?
Yes, when the account is depleted by permitted lifetime withdrawals and all rider rules are followed.
Is the Income Enhancement Benefit long-term care insurance?
No. It temporarily doubles the lifetime payment after a qualifying ADL impairment and sufficient contract value. It is not reimbursement or indemnity long-term care coverage.
What do beneficiaries receive?
Beneficiaries generally receive the remaining contract-based death benefit. The separate Withdrawal Base and Deferral Bonuses are not paid as a lump sum.